What happens if I balance transfer more than I owe?

If you overpay your credit card balance, the payment will result in a negative account balance, which means the credit card company will owe you money. Overpayment of credit cards can be associated with refund fraud and money laundering, and could cause your account to get frozen or even closed.

What happens after balance transfer period?

Depending on the card, this special interest rate will apply to purchases, transferred balances or both. Once this period is over, you’ll be charged a new interest rate and will owe interest on any unpaid balance on the card.

What is one disadvantage of going through with a balance transfer?

Cons of a Balance Transfer You could end up with a higher interest rate if you don’t qualify for a promotional interest rate because your credit score, income, or existing debt. You typically must have an excellent credit score to get a low interest rate balance transfer offer.

How do you avoid balance transfer interest?

To avoid a balance transfer fee altogether, you’ll need to find a card that doesn’t charge this fee. If that’s not possible, the next best thing is to look for a card with a low balance transfer fee. In both cases, you’ll want to pay off the balance before the introductory period ends to avoid any interest charges.

Does a balance transfer to an existing card affect credit score?

No credit score impact: balance transfers to one or more existing cards. If you move this balance to one or more of your other cards with a lower interest rate, your credit score won’t be affected.

How do I get around a balance transfer fee?

The only way to avoid a balance transfer fee is to find a card that doesn’t charge one. Such offers are generally reserved for people with good to excellent credit. If you’re not sure you fit that description, check your credit score to find out.